SYDNEY--Rio Tinto PLC (RIO) has sold down its stake in aluminum
products company Constellium NV (CSTM) for nearly US$330 million,
the latest in a string of sales as the mining giant looks to
bolster its balance sheet amid a slowdown in resources demand.
The Anglo-Australian mining company sold more than 19.3 million
shares last week at a price around US$17 each, according to a
filing with the U.S. Securities and Exchange Commission.
As a result, Rio Tinto's stake in the Amsterdam-based company
has fallen from 28% to 9.2%, according to the filing. That means
the miner retains 9.6 million shares.
London-based Rio Tinto has been slashing costs and spending to
cut debt that swelled to almost US$19 billion last year, as it
looks to protect its single-A credit rating.
In July, the miner agreed to sell its majority stake in
Australian copper-and-gold mine Northparkes to China Molybdenum Co.
for US$820 million. Last month, it signed a deal to sell its
Clermont thermal-coal mine in Australia's Queensland state to
Glencore Xstrata PLC (GLEN.LN) and Sumitomo Corp. (8053.TO) in a
deal worth US$1.02 billion.
Constellium, which serves the aerospace, packaging and
automotive markets, was formed after Rio Tinto spun out assets
purchased as part of its US$38 billion acquisition of Canadian
aluminum giant Alcan in 2007. In 2011, it sold a controlling stake
in what would become Constellium to Apollo Global Management LLC
(APO).
For the year ended Dec. 31, Constellium swung to a profit of
EUR134 million (US$181 million).
Constellium listed on the New York Stock Exchange and NYSE
Euronext Paris in an initial public offering in May which valued
the aluminum business at around US$333 million. Constellium's stock
fell 0.8% to US$19.99 a share Monday.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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